Integrated Material

Management

Group 2
 Definition
It covers all aspects of material costs,
materials supply and utilization
All the concerned Depts. – Materials,
Design, Production, Quality, Accounts
etc. have to work in close co-
ordination with each other.
It performs the following functions
 Case Study

Dubai Palm Jumeirah Island

Material Planning And Control
 Material Planning And Control
Raw Material
§ Sand - From bottom of the Persian Gulf
§ Rocks – Blasted from 16 quarries
Human Resources
§ Skilled - Hired world's specialist
contractors from Belgian and Dutch
§ Unskilled - Approx. 40000 Asian workers
§
Machines
§


 Vendor Development &
Evaluation
Vendor Development can be defined as
any activity that a Buying Firm
undertakes to improve a Supplier's
performance and capabilities to meet
Buying Firms' supply needs
Vendors should be valued partners in
business development and work should
be done with a spirit of mutual co-
operation to meet business objectives

 Advantages of Vendor
Development
Regular source
Long term business partner
Consistent quality
Optimum price
Timely or just-in-time delivery
Adequate quantity

 Vendor Development &
Evaluation
 Vendor Development Process
Establish mutually beneficial relationships
Provide necessary technical assistance in
form of Project engineering
Help vendors financially
 Evaluation
Meet ISO 9000 requirements
Vendor Rating System.
Compare prices, delivery reliability, delivery
date adherence and quality of the item.


 Purchasing
Intricate decisions are


What to buy
When to buy
Where to buy
How much to buy
How much to pay
How much to stock



 Purchase Guidelines
To deal with Approved / Regular Vendors
To follow Quality System procedures as
per ISO 9001- 2000
To evaluate and develop vendors on the
basis of vendor’s background, quality
of products/services and reliability.
To derive maximum cost benefit by :
vConsolidating requirements
vStrategic negotiations
vUsing techniques such as Reverse Auction

 Reverse Auction
A reverse auction is a type of auction
in which
the roles of buyers and sellers are

reversed.
Sellers compete to obtain business, and

prices
typically decrease over time.

On closing of the bid process, the

lowest bid
price is registered.

It saves time as it is very fast as

 Receiving
Receipt of goods in a nominated
location
Unloading
Storage of the goods unloaded
Weighing of the goods received
Documentation for receipts of goods
Documentation for the storage of goods
Communication to all concerned about
the receipt of the goods
 Dispatching - Just In Time
It is a manufacturing philosophy that
attempts to produce with shortest
possible lead time, lowest possible
level of inventory, and lowest possible
waste


It is continuous process it seeks
eliminating raw material stock and
finished goods stock
 Inspection
Ensures counterfeit detection
and preventive processes are
in place assuring product

quality and consistency

Techniques are - visual inspection,

engineering review, testing



 Inventory Control
Inventory control means keeping track
of your stock
Knowing how much was sold and how much
is left
Let’s you know when to order more fuel
Let’s you keep records of losses and
gains
Gives you consumption rates of high
demand and low demand

 Standardization
It is a belief that the market has the
ability to
understand and chart a valid future

direction
through the use of collective wisdom, to

understand the impact of change and to

adjust to
that change

ISO is an international organization

for standardization.
Assurance that organization follows
certain standards in production of
goods and services
There is need for standardization
 Device Independence

Application independence Avoidance of vendor lock-in

Standard

Long term preservation Minimize cost

Interoperability
 Value Engineering
It is an analysis of function of a
project or a service, performed by
qualified agency or contractor
personnel
It is directed at lowering direct and
life cycle costs, without affecting
performance, reliability, quality and
safety
It seeks to eliminate unnecessary costs,
while maintaining or improving the
functionality of the project

 Future

Dubai plans to construct 3 more islands on line of Palm Jumeirah

 E-Everything
E-tendering
E-bidding
E-specifications
E-layouts
E-cash
E-negotiation
 Radio Frequency
Identification(RFID)
RFID refers to the set of technologies
that use radio waves for identifying
objects or people
Advantage
vDoes not require direct contact
 or line-of-sight scanning
vScan an entire pile of stock in one go
vReduces staff time as items can be
checked on the
 conveyor belt
Green Supply Chain Management






Improve Agility
Increases Adaptability
Promotes Alignment
Thank You